Xero Integrations: Alternative to GoCardless

TransferWise content team
3 minute read

If you’re a small business owner, freelancer or entrepreneur you most likely use accounting software to make it easier to manage your money. Xero is one of the most popular accounting tools out there, and has now teamed up with GoCardless to offer more simple solutions to help busy business owners reduce their admin, and get paid on time by clients without having to chase late invoices.

Xero actually offers a range of integration with partners which can help you to streamline your workflow and lighten the load a little. For example, you can integrate your TransferWise borderless account for business with Xero, to make it easier to manage international payments in multiple currencies.

This article will take a look at how GoCardless for Xero works. We’ll also highlight TransferWise as an alternative way to make doing business easier, cheaper and faster.

GoCardless for Xero: What is it?

With GoCardless you can set up direct debit arrangements with your customers and clients, to make sure you’re paid quickly for every invoice you send out.

GoCardless allow you to add a ‘Pay Now’ button to your invoices for easy payments from clients in British pounds, Euros and Australian, New Zealand and Canadian Dollars. Also, the integration with Xero allows you to reduce admin time spent reconciling accounts and chasing late invoices - by keeping payments and accounting all in one place.¹

However, receiving these payments from clients isn’t free - you will need to pay a 1% transaction fee for every transaction you take. This relates to both the ‘Standard’ and ‘Plus’ account options. You will also have to pay a monthly fee for both the ‘Plus’ and ‘Pro’ accounts.² More on fees a little later.

GoCardless alternative: TransferWise

Xero has lots of great integrations with partners, not just GoCardless, which are making life easier for business owners, such as TransferWise. TransferWise is a leading provider of international payments and multi-currency account services for personal and business customers. Like Xero, TransferWise aims to remove some of the complexity from running a business, and help cut costs and admin time as well.

Create your TransferWise borderless account for business free online, with no monthly fee, and get your own local bank account details for GBP, USD, AUD, EUR and NZD to receive payments from clients with zero fees.

Connect your borderless account with Xero to make sure all accounts are synced every day. That means no more manually exporting or uploading statements. If you’re not already using Xero you can even try Xero for free for 30 days.

GoCardless fees

When you use GoCardless with Xero, you’ll pay a fee depending on the transactions you make and the account type you choose to open. Here’s an outline of the costs involved²:

Standard Plus Pro
Monthly fee Free £50 £200
Transaction cost 1% - minimum £0.20, maximum £2 1% - minimum £0.20, maximum £2 Volume based pricing
Features No contract needed Collect payments immediately Add branding to payments Have your name show on clients’ bank statements Custom made package, including setting up direct debits with customers in person or on the phone

As a business owner you’re always looking for ways to save time and money, so you can increase your profits and invest more in growing your company. Once you’re up and running, using Xero integrations to streamline your business may make sense.

Choosing the payment option that works for your business is important, to ensure that you can both easily receive payments from international clients and pay suppliers hassle-free, whilst avoiding high international fees. Check out how TransferWise can help you send and receive low cost international payments, so you can easily pay suppliers and employees overseas, and work with clients all over the world.

With the borderless account, you’ll also be able to hold over 40 currencies and change between them for a low upfront fee, using the mid-market exchange rate. And to make spending simple, you can get a business debit card, and access to other helpful time saving tools like an open API and batch payment options.

Sources used:

1.GoCardless: Xero Integration
2.GoCardless: Pricing

Sources checked on 20-July 2019.

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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